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Praveen,
Now that you mention $1million as your "budget", in Cupertino, as Dave mentions under, you need atleast $800-900K just for the land and another $350-600K to build a home,depending on what level of materials you choose to put in. That puts you at purchasing an older home and re-doing whats needed in a particular property. You will have to decide where your compromise will be, as in every home there will be something you will need to compromise upon. If you are looking at Cupertino, then i am guessing schools are important to you, thats what you are paying for. Then you need to purchase a home that meets your "must haves" and work on what you would "like to have" in the home.
Do contact me, let me know if i can help further.
Regards,
Nina

In the areas that you are interested in, the value is mostly in the land with residual "home" value. You might look at your purchase by evaluating your total budget (ie. what's the total amount of money you have for a completed project.) I would then back out the construction related costs (include holding and financing costs) and then you have the amount needed to purchase the property. Like most buyer's in your situation, you'll likely have to make some choices between a total tear down or a remodel/add to existing structure. In the end if your budget doesn't include approximately 800K for the land and a minimum of 350/sf for construction, you're likely to buy a property that can be expanded/upgraded versus a complete tear down.

When we started looking for house to buy which are < 1m we realized that in certain places the value is not for the house, but for the land. Its difficult to know this until and unless you have a look at the house.

Dear Praveen,
Firstly, Do You Have Realtor? If yes, they should be working to show you precisely what you home buying/building needs are. If not, get a good Realtor to work with!
I work as a full time Realtor with Coldwell Banker in Cupertino, and live here too. I am also a Public Safety Comissioner with the City of Cupertino, i know my city very welI!
I do have a plot of land I can show you asap. It has Stevens Creek Elementary, Kennedy Middle and Monta Vista schools attached to it. I also have good Construction companies who can help you design and build your home. We need to meet and talk things through.
Working with a Realtor who can help and guide you through the whole process, whether its a really old home that you are undertaking to completely re-model/re-build, or build a new home on a plot of land!
So please do contact me, lets talk real estate!
Thanks and all the Best,
Nina Daruwalla

I'm confused. I think you are asking for a quality buildable lot but yet you say the homes you have been looking at are old and in need of upgrades. If you want a buildable lot, it doesn't matter the condition of the home because you will tear it down. Which is it? Are you looking for a lot to build a home on? Or are you looking for a lot that has a home that is livable (maybe remodeling within existing footprint)? Please clarify?

Praveen,
Finding a suitable property is easy. Taking it from there to moving into your dream home is not something that a lay person should take on without an experienced guide. The 'buy to build' strategy is full of pitfalls for the unwary, and the knowledge needed to execute it is beyond the reach of most non-professionals.
My advice is to find an experienced Realtor who can explain to you all of the steps involved, and steer you through them.
Note: As of this morning there are 4 such listings in Cupertino ranging from $738,000 to $1,450,000.
Bill

Hi Praveen,
There are a number of possibilities available in Cupertino and the surrounding area, both in buildable lots and obsolete homes. All you need to do is engage a reliable realtor and explain your wants and the resources that you are capable and willing to commit to the project. What have you seen so far and why have you found it lacking?